Redwood Trust, Inc. (RWT) - What Are Brokerages Saying About This Stock?

Key Points

• Analysts have a mixed outlook: Redwood Trust has a consensus “Hold” rating from 11 analysts, with six Buy, three Hold and two Sell recommendations. The average 12-month price target is $4.78.
• Quarterly earnings fell short of expectations: The REIT reported EPS of $0.18, below the $0.21 consensus estimate.
• Company insiders have been buying shares: Insiders purchased 244,171 shares worth about $948,000 over the past 90 days.

Shares of Redwood Trust, Inc. (NYSE:RWT - Get Free Report) have earned a consensus rating of "Hold" from the eleven analysts that are covering the firm, MarketBeat reports. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and six have given a buy rating to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $4.78.

RWT has been the topic of several analyst reports. Citigroup reiterated a "market outperform" rating on shares of Redwood Trust in a research note on Thursday, October 15th. Zacks Research lowered Redwood Trust from a "hold" rating to a "strong sell" rating in a report on Wednesday, October 14th. Citizens Jmp decreased their price target on Redwood Trust from $6.00 to $4.00 and set a "market outperform" rating for the company in a research note on Thursday, October 15th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Redwood Trust in a research report on Monday, September 21st. Finally, Wells Fargo & Company dropped their price target on shares of Redwood Trust from $6.00 to $3.50 and set an "equal weight" rating on the stock in a report on Wednesday, November 4th.

Redwood Trust Trading Up 1.9%

Shares of NYSE RWT opened at $2.90 on Friday. Redwood Trust has a 1 year low of $2.69 and a 1 year high of $6.97. The company has a debt-to-equity ratio of 37.79, a current ratio of 69.05 and a quick ratio of 67.49. The firm has a 50-day moving average of $3.43 and a 200 day moving average of $4.87. The stock has a market cap of $338.81 million, a P/E ratio of -8.54 and a beta of 1.49.

Redwood Trust (NYSE:RWT - Get Free Report) last posted its quarterly earnings results on Tuesday, November 3rd. The real estate investment trust reported $0.18 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.03). Redwood Trust had a positive return on equity of 16.59% and a negative net margin of 2.12%. As a group, sell-side analysts expect that Redwood Trust will post 0.96 EPS for the current fiscal year.

Redwood Trust Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 23rd were issued a $0.18 dividend. The ex-dividend date was Wednesday, September 23rd. This represents a $0.72 annualized dividend and a yield of 24.8%. Redwood Trust's dividend payout ratio (DPR) is currently -211.76%.

Insider Transactions at Redwood Trust

In other news, CFO Brooke Carillo purchased 26,065 shares of the company's stock in a transaction dated Tuesday, September 15th. The shares were purchased at an average cost of $3.85 per share, for a total transaction of $100,350.25. Following the purchase, the chief financial officer directly owned 140,481 shares in the company, valued at approximately $540,851.85. This represents a 22.78% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Greg Kubicek acquired 50,000 shares of the business's stock in a transaction that occurred on Tuesday, September 15th. The stock was purchased at an average cost of $3.85 per share, with a total value of $192,500.00. Following the acquisition, the director directly owned 127,185 shares of the company's stock, valued at $489,662.25. This trade represents a 64.78% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 244,171 shares of company stock valued at $948,402 over the last 90 days. 3.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Redwood Trust

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Marshall Wace LLP grew its position in Redwood Trust by 89.5% during the third quarter. Marshall Wace LLP now owns 302,067 shares of the real estate investment trust's stock valued at $1,172,000 after buying an additional 142,683 shares during the period. Polymer Capital Management US LLC increased its holdings in Redwood Trust by 337.3% during the third quarter. Polymer Capital Management US LLC now owns 79,895 shares of the real estate investment trust's stock valued at $310,000 after buying an additional 61,623 shares during the last quarter. NFC Investments LLC increased its holdings in Redwood Trust by 32.8% during the third quarter. NFC Investments LLC now owns 607,686 shares of the real estate investment trust's stock valued at $2,358,000 after buying an additional 149,995 shares during the last quarter. Ieq Capital LLC bought a new position in Redwood Trust in the 3rd quarter worth $134,000. Finally, Boston Partners raised its holdings in Redwood Trust by 71.1% in the 3rd quarter. Boston Partners now owns 4,007,937 shares of the real estate investment trust's stock worth $15,292,000 after purchasing an additional 1,666,048 shares during the period. Hedge funds and other institutional investors own 74.34% of the company's stock.

About Redwood Trust

Redwood Trust, Inc. is a specialty finance company focused on the U.S. housing and mortgage markets. Founded in 1994, the company invests in and finances residential mortgage credit and provides mortgage banking services. Through businesses including Sequoia and CoreVest, Redwood originates and acquires residential loans, including jumbo mortgages for homebuyers and business-purpose loans for residential real estate investors. Its activities also include investing in mortgage-related assets and providing financing for rental housing and other real estate.

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